tv [untitled] April 10, 2013 3:30pm-4:00pm PDT
consistent in passing these bonds is that we've put into place this really wonderful capital planning process. we've been much more comprehensive and i think responsible as a city in terms of having clear policies and guidelines in place. and one of those is that we issue bonds and to retire them. i think the voters appreciate it when we impose that kind of fiscal discipline. and, so, my preference will be just to stay within that. and if the modeling turns out to be not at all for any kind of change to the bond, we can always make a reassessment about the size of various bonds or about other ways of financing our important transportation system. but i would be comfortable sticking with the language as is. >> okay. >> okay. thanks, everyone.
appreciate it, mr. strong. colleague, if there's no more comments right now, i know there's a pending motion, but we'll take public comment first. if there's any members of the public that wish to comment on items number 2 or number 3, please step forward. [inaudible]. good afternoon, my name is kim carter. i am a union representative with ifpte local 21. as you know, we represent 4,000 city workers including criminalists in the sfpd crime lab. they work really hard to solve crime by analyzing evidence. their work helps to convict the guilty and free the innocent. i'm here today to share our appreciation for inclusion of funding for a new lab in the plan. the current lab is outdated, too small, and falling apart resulting in backlogs. a new state-of-the-art facility is a much needed improvement and a crime fighting tool for san francisco. thank you. >> thank you very much. any other members of the public who wish to comment on items 2
or number 3? okay. seeing none, public comment is closed. [gavel] >> colleagues, we have items number 2 and 3 in front of us as well as an amendment from supervisor wiener. that is clear enough for our city attorney. okay. supervisor wiener, do you want to comment first? >> yes. again, i want to thank capital planning committee and mr. north for all the work. you know, despite my criticisms of the transportation aspect of this plan, and i won't repeat what i said before about i think its inadequacy overall, this capital plan is very solid and very important. i'm sorry, mr. strong, i'm sorry about that. i think the plan is quite worthy of support and so i'll be supporting it today and i move that we forward it with
positive recommendation, assuming that the amendment is [inaudible]. >> thanks. i also want to thank mr. strong. and i do think our capital process is one of the great things we have fous going on from a planning perspective and allows us to comment on what direction we want the stoic go in and concur with supervisor wiener's comments. when i talk to voters and there's a pact with them holding down the percentage of their property taxes, but between new bonds as we retire the old ones, i think it makes a lot of sense to people and people are on board with it so i concur with that. so, we'll make a motion to accept supervisor wiener's amendment. we can do that without opposition. okay, so moved. [gavel] >> and we can move items number -- make a motion to move items number 2 and 3 forward to the board with recommendation. >> [inaudible]. >> oh, sorry. so, let's take this up, then. so, with the item number 2 we can table item number 2. we can do that without
opposition. so moved. [gavel] >> and item number 3 as amended, we can take a motion to forward to the full board with recommendation. without opposition. so moved. [gavel] >> all right. thank you. mr. clerk, can you call item number 4 and 5 together? >> item number 4, hearing to receive an update from the mayor's budget office on the city's information and communication technology plan. item number 5, resolution adopting the city's five-year information and communication technology plan for fiscal year 2013-2014 through fiscal year 2017-2018 pursuant to administrative code, section 22a.6. >> thank you. and we have a member from court here. i also want to recognize i called for this hearing along with supervisor chiu. want to thank him for that. obviously focus here in terms of our budget process, also
recognizing how important our technology is to improving our technology within our city and county of san francisco is to our ongoing services and operations as a city. so, i look forward to this hearing and president chiu, comments? >> thank you, colleagues. just wanted to make a couple of brief opening comments. first of all, i wanted to comment obviously sponsor this hearing not just here as a representative to coyt, but also as the author of the legislation that now requires five-year capital planning when it comes to our information technology. and i know you've heard me say this before, but there are still so many aspects of our city's i-t systems that are stuck in 1999 and we need to -- and we have needed to figure out how we invest in smart ways to move us into a truly 21st century city government. from a big picture standpoint as i think you know, colleagues, we spend about $200 million a year on our annual i-t budget, but as our acting cio and our mayor's budget office will layout, we have about a half a billion dollars
of capital needs over the next five years. we have about a $200 million shortfall over the next five years and so just as in the ten-year capital context, we have significant shortfalls that we need to find funding for. that is also the same when it comes to our i-t. i want to apologize unfortunately i have backed up meeting in my office and i need to bet back to my office brief. but i just wanted to and i know there is a presentation that the city staff will do. but have two questions and if at some point during the presentation you might be address it that would be appreciated. i really think that this sct plan well captures a lot of our city's needs and has been the product of a lot of work from a lot of departments around the city. ~ ict one thing i had hoped would be in this project we which we discussed at coyt and this was an issue that was raised by formal members of the civil grand jury when i it came to i-t, this plan doesn't really
talk about some of the more troubled projects that we've had. in other words, projects like the justice program like our e-mail system, like data centers, et cetera, where we have over a number of years said we were going to do something, laid out a budget for it, and not only missed those budget targets, but missed the scheduled targets as well. and i know this is a forward looking document, but one strong suggestion i have continually had for the department of technology as well as for coyt is that we do a better job of tracking the progress that we said we were going to make and comparing that on a regular basis to where we are. it is a -- it has been a real challenge when it comes to move forward our it and something i think we need to do to be more accountable. the other thing i just wanted to mention is i know there are overall city-wide it board committeevxes. but i think one of the biggest challenges we've had in the it world within city government is understanding within different departments what folks are doing and figuring out whether we can be doing more from a
centralized standpoint. and while the information in the proposed five-year plan lays out overall numbers, i don't think it does or pays enough attention to some of those departmental budgets and how that fits in with the larger [speaker not understood]. i want to make those two opening comments and i know city staff and our acting cio has some perspectives on that but i just wanted to raise that particularly as our colleagues are starting to focus on this ict plan. but with that, mr. chair, thank you for being here. i also want to thank mayor's budget office and our acting cio and the department of technology for all the work they've done on this. >> great. >> [inaudible]. i am the -- good afternoon. my name is [speaker not understood]. i am the acting cio and acting director of the department of technology. i'm going to be doing the presentation today along with [speaker not understood] the mayor's office. i'm going to talk through some of the plan and history and
shanda will be covering more of the financial strategies section. so, i wanted to start just as the supervisor chiu mentioned, this plan has been a number of months in development. it's required work with across city departments, a lot of city staff, hundreds of hours going into it, a number of meetings at coyt with coyt subcommittees, work with dtcoyt and the mayor's office so i really appreciate their assistance in that. the plan itself is the second itt plan for the city. the first was adopted by this board in june of 2011 and there have been a lot of ongoing work and ongoing ways of looking at the plan and what it needs to be in the future. you heard the earlier presentation about the capital plan. in a lot of ways that is a much more mature planning process. this is more like the younger cousin who is here the second time. and we keep developing so that's why we look forward to these hearings to learn more about what you as policy makers
want to see in this plan and then we continue improving it each time we go back. >> as long as you didn't say black sheep or [speaker not understood], it's okay. >> younger. before we get into the plan, one of the things supervisor chiu, we'll address later to look at the troubled projects that he references and also just the status of certain projects, one of the things i do want to highlight that we often miss whenever we talk about it and itt planning in the city is to really look at the accomplishments over what we've done the last two years since the first itt plan was a doveded. the last plan was structured around 10 major fund initiatives. this slide just points out several of those major initiatives and some of the accomplishments. i'll just highlight three major ones that i think have impacted most departments across the city. those would be the successful roll out and implementation of emerge.
the data center consolidation project with the new airport site we'll be opening in the next couple of months and the consolidation efforts we've done on behalf of the city, both at the future airport site, the [speaker not understood] site and the 10 11 turk site have already resulted in a couple million dollars of saving where we have not needed to purchase new equipment because we've been able to consolidate into the existing equipment and licensing and availability of the site. and lastly i just wanted to mention some of the work that has been happening in our enterprise agreement. as part of the data center consolidating and the decision to go with vm wares as the enterprise platform for the city in its virtualization efforts and looking at the needs of the other city departments, we have now been able to save the city $4 million that would otherwise be spending over the next three years. so, these are just a few of the accomplishments over the past two years since the last plan was developed.
based on some of the main initiatives that were set forth in it. ~ the plan before you today for the next five years is different in a number of ways from the current itt plan. the current ict plan sets forth 10 strategic initiatives while the new plan is the next iteration of that, which really looks at the strategic goals that the city needs to move forward it in the city. ~ the last, the current also was divided by group projects by major service area such as recreation, public safety, but the new plan before you really groups them by the primary goal that they support. we added an additional project category around critical project development which i'll reference a little bit later. the existing plan was more focused on a smaller subset of city departments that were primarily responsible for most of the it spent in the city. but the plan before you today reached out to all city departments, enterprise and general fund and sought to seek
what their it needs were over the next five years. so, it's much more expansive than the earlier version. the current plan had descriptions of the it, each of the initiatives that were more for the rationale and anticipated results by the proposed plan, dives a little deeper as the supervisor mentioned earlier. gets more detailed project budgets, includes timelines, and then provides a status on current projects. and then lastly, the financial strategy portion of the plan has been more refined with some additional options added for use of one-time sources of funding as well as looking at new pre-planning funding being available for projects. there were three main guiding priorities for development of the itt plan. innovation, sustainability and resilience. we talk a lot about whether innovation in and of itself should be part of the ict plan and decided whether innovation
needed to be looked at across every it project we do in the city and wasn't so much a goal as it was, and i approach how we look at itt projects for city government. sustainability we really talked about two key factors. one, attracting, developing and maintaining it personnel and there was a separate working group with the hr, number of unions and a number of city departments. right now looking at how we can strengthen it hiring and retention efforts in the city. and then also it is important for sustainability is how we plan and how we monitor projects as they go along. and that is emphasized in this plan more than the prior one. and then lastly, looking at the resilience of our it sis at thectionv. -- system. that's both from a disaster pre-faredness system and security. preparedness ~ the new itt plan is based around four strategic goals and
this provides an overview of the goals and the [speaker not understood]. the four goals are make government more efficient and effective through technology, improve public access and transparency, strengthen security [speaker not understood], and support and maintain critical infrastructure. -- it infrastructure. there were 122 project requests we received from various city departments that support these goals. ~ the total estimated cost over the five-year period for these 132 projects is $5 48 million. and chanda will be discussing in a few minutes the financial strategies set forth in the plan for addressing that significant need. and then i also wanted to mention there is a table within the plan itself starting on page 53 that provides full listing of all 132 it projects by department by fiscal year request over the five-year period and then also which
specific strategic goals they support. the next few slides just provide a summary of examples of the information that are in the plan. using goal 1 here making government more efficient and effective through technology, each of the plans have two or three strategies that we felt were essential in order to achieve the goal. in this case it's maximizing the use and effectiveness of current technology to provide the best service possible. deploy viable technology with tangible benefits to constituents and support green technology to reduce the city's carbon footprint. and then here there are a number of featured projects throughout the plan. we have some major initiatives and future projects that support each of the goals as well as the full listing of the projects. and one of the things i want to point out here which we'll reference more when we get to the financial strategies discussion is the functional category break out that we did for each of the projects.
in addition to the -- looking at projects whether they were new or replacement or maintenance effort, we added the new critical project development category, and that was really to focus on pre-project development and planning so that the committee in coyt had a better understanding of what was really needed for that project before we made a significant investment of city resources. so, the next few slides just provide other summaries of goals 2, 3 and 4 in terms of how each of those goals are supported with the detailed strategies and some of the featured projects of those. we can go into any of those in more detail if you have any questions. so, at this point i want to turn it over to chanda who will talk about the financial strategies portion. >> good afternoon, supervisors. my name is chanda chan from the [speaker not understood].
i wanted to give you an overview of the city-wide it budget as supervisor chiu mentioned. as you can see here, the city budget is approximately $208 million in the current year for it. as you can see, 59%, a large portion of that budget, is for personnel costs which is i think more than we anticipated. if we look at the professional services that is a little over 10%, and that is a little lower than we anticipated. so, i just thought this was an interesting way of looking at how the city spends its money now as we look at the five-year request going forward. this slide here, again, shows the requests that have come through. [speaker not understood] request by general fund and nongeneral fund projects. you can see 293 million was the request that comes through as nongeneral fund projects that represents 53% and 55 projects.
those projects have identified sources of funding. on the general fund side there are 47% of requests at 254 million. those have at this stage only 49.1 million in identified funding which is the general fund coit commitment that the city has made and the current ict plan. so, that leaves a 205 million dollar funding gap we are looking at. a substantial portion of that 205 million is the replacement of several legacy it system in the city. ~ there is the city's replacement of financial system which is $72 million request. replacement of the public safety radio system which is 69 million. the replacement of the city tax system to the assessor and treasury tax collector, those are approximately 20 million. so, though four requests we consider major it investments and they makeup a substantial portion of the general fund
credit. ~ request. this next slide shows the relationship of those major it investments over the course of the five years with the other departmental requests. the major it investments are in red and in blue are the other departmental requests. and you can see that low line going along the bottom, the green line, is the current coit allocation. so, you can see the substantial funding gap that we're looking at. and, so, there were many considerations that needed coit was looking at when developing the financial strategies. a lot of these financial strategies that are in the fct plan are building off of what is in the current plan. this plan does have the financial strategies categorized. the first category is improving planning and increasing collaboration. this is, again, emphasizing the importance of planning and critical project development
for these major projects. this is underneath this category is also project deferral which as you can imagine, many of the project requests that have come through will need to be deferred over five years. under alternative funding sources is the financial strategy of sharing city-wide costs between general fund and enterprise departments. a large it project that comes to mind recently was emerge was funded in this way. this may be something we look into for future projects. also under this category is the identification of state and federal grants to help pay for some of these projects. and the last category is budget reallocation, and this is something new that i guess some of the items in here are new to ict plan. i want to highlight the first bullet which is identification of one-time versus the funding. i don't think this is new in terms of how the city funds projects, but it is something that is called out in this plan. and the second bullet is, again, funding the general fund
commitment that we already have in the current plan. this final slide is showing how these financial strategies help us reduce that funding gap. so, you can see at the top, again, the 254 million in requests, and the first financial strategy is grow general allocation by 10%. 10.1 million. that leaves us with 205 million left to reduce. the second strategy is improve planning and increase collaboration. this is really identified projects where there are opportunities to consolidate efforts. we have identified approximately 12 million in that area. the third is project deferrals. so, what really this large category of strategy is suggesting is that we will not be able to fund all of the major it investments over the course of the five years, that we will need to make some
difficult decisions about potentially deferring some of them. and that is at 4 million. the second to last one is alternative funding sources. this is suggesting that if we were to fund one or more of the major it investments, that we would need to share some of those costs between general fund and enterprise departments. and the final strategy that we looked at is budget reallocation, and that is the identification of one-time sources of funding to help us meet this funding gap. so, that is, you know, the -- i guess this is an overview of what the plan is recommending. there are no funding recommendations in this plan. one of the things that we will be doing going forward is the budgeting -- budget and planning subcommittee is reviewing projects for the next two years. that committee will have recommendations and quite will
make recommendations based on that. again, another area that supervisor chiu mentioned that coit will be working on over the next few months and years is the improvement of city-wide performance measures and metrics. and finally, we will continue to review opportunities for collaboration, standardization and consolidation city-wide. thank you. >> colleague, any questions, comments at this point? supervisor avalos. >> i'm just looking at your table on page 15. a lot of these line item look kind of the same to me, you know, grow coit general allocation 10% a year. how is that different from the budget reallocation at the bottom of that chart? alternative funding sources, could that be budget reallocation, too? part of deferral -- it's just
not clear there is anything substantial. >> the current ict plan there is a commitment the city has made to increase the general fund allocation. at that time it was 6.6 million. to increase that by 10% every year. and, so, in 2014 that amount is $8 million. so, that is something that as the budget and planning subcommittee is reviewing projects, that is the commitment level that the city has made. and when the decisions are made and projects are prioritized, it's using that amount. i think the budget reallocation is a little bit different in that as we look at some of these major it investments and the amount of the coit allocation, there really is no way that these major it investments can be funded through the coit allocation as it is right now. they're just substantially larger than we have in any given year. so, really, the budget reallocation is really saying that when there are one-time sources of funding available that perhaps it projects are prioritized for some of those funds.
so, that's how that is different. project deferral is really saying that through greater planning, we can sequence a lot of these projects. so, those projects have the greatest priority are then funded and then we go through the process of, you know, continually reviewing those to make sure that the city is supporting the goals that are highlighted in the plan. >> i look at them as very broad guidelines. >> yes, they are. >> [speaker not understood]. not magic. last question touched upon, drilling down deeper into the program within coit, i recall when i was chair of the budget committee a few years back, every year and before that, every year there was the [speaker not understood] would come forward. i haven't heard -- they didn't come before budget last year and i'm not sure if it came before us the year before, i don't recall. and just wondering where -- what the status is of that project. i know it was a very large allocation that we made year
after year and i'm happy that we haven't had to do any reallocation for that, but just kind of wondering where things are, how that project is coming together. >> supervisor, i believe if it came before the budget committee, it was likely more at the request of budget committee members. there's been an ongoing allocation for the justice project as a continuing project previously within the department of technology for the past couple of years. it's been within the city administrator's office. there are no new coit requests or increased funding requests related to that project so that's probably why it also hasn't come up on the radar. regarding status update, that's one of the projects the performance committee is looking at, updates. the most recent one, i understand, is that they are looking at the end of this calendar year to be able to complete some of the additional modules. one of the biggest questions is the court system which we have
somewhat limited control over, being able to get them to move as quickly as we'd like and to prioritize their work in order to connecting with the system. >> okay, thank you. >> thanks, supervisor avalos. any other questions, colleagues? okay, seeing none, thank you very much, much appreciated. all right. mr. clerk, did we call items 4 and 5 together here? >> yes. >> so, at this point open it up to public comment. anybody want to comment on item 4 or 5, please step forward. thank you for the opportunity. my name is mort ray field and i was a member of last year's civil grand jury. there are other members in the audience who were my colleagues in this adventure. you may recall the government
audit oversight committee has reported back to you on our report earlier this season. i'm not quite sure if it was in this calendar year, but i think it was in the last calendar year. a number of our recommendations and finding have a bearing on what's before you today. while an improvement over the current ict plan, the proposed ict plan is hardly sufficient in our -- looking at this as a city in-house technology plan. there is not much strategic about it. we find the proposed plan remains primarily project and department oriented while four very general goals are stated in the proposal there were very few measurements that could portray their success. since coit and the ict plan are relatively new,